Tesla’s annual meeting is set to produce some extra fireworks on Thursday with an investor services firm calling for ‘no’ votes against two current directors.
In a note sent to clients by Institutional Shareholder Services (ISS) last week (according to reports by Dow Jones, Bloomberg and Reuters), the firm advised voting against board members James Murdoch, the former News Corp. executive, and Kimbal Musk, the brother of Tesla’s gregarious CEO.
Capital.com reached out to ISS to confirm the contents of the note but did not receive a reply.
The note is quoted as saying the directors received “outlier levels of pay without a compelling rationale.”
This is not the first boardroom drama at Tesla. In 2018, the Securities and Exchange Commission required the company to add two independent board members as a part of a settlement.
CtW Investment Group, which works with union-sponsored pension funds, said in a letter to two of Tesla’s board members at the time that the move is a good start but that more significant leadership changes at the company are warranted.
“Given the lack of responsiveness to fundamental governance concerns, we believe that shareholders need new stewards on the board. Now is the time for the board to finally take decisive action,” the letter reads in part.
Showdown in Texas
Tesla expects to discuss several items at the meeting – such as its recent, record-breaking delivery figures. It will take place at Tesla’s Austin, Texas manufacturing facility rather than at its Fremont, California headquarters. In a press release from last week, the company said the move was made to accommodate “ongoing public health requirements and travel considerations”.